Car Valuation for insurance purposes

MouldyOldDough

I was wondering whether insurance companies had upped their payouts for total loss - now that second hand values had increased (due to shortage of supply of new vehicles) ?

If so - is it necessary to increase the value on the document ?

[Deleted User]

Does your insurance not simply state market value or similar if it's an older one?

MouldyOldDough

Deleted_User said:

Does your insurance not simply state market value or similar if it's an older one?

But the market value has increased

Sandtree

Insurers use guidebooks but these days its online software and not a physical book and so are updated very frequently, Glass for example update their Live Retail price daily (and other aspects monthly).

Most insurers will say "market value" and the value asked at quote stage has minimal to no impacts but if your in the minority where your answer is recorded it could be worth updating if its materially out now

400ixl

The value you put into the request for a quotation is not a commitment on either side as to any future payout value. That will always bee the deemed market value (retail non main dealer average) by the various guides they use.

The number you put it is there so they can decide whether it needs to be referred to an underwriter as outside of the norm they expect.

The only exception is for agreed value policies which is a much more formal process with evidence provided to reach that agreement.

As such, there is nothing to update for the vast majority of policies due to the rise or fall of market values. The guides are updated at least monthly and take these fluctuations into account.

[Deleted User]

MouldyOldDough said:

Deleted_User said:

Does your insurance not simply state market value or similar if it's an older one?

But the market value has increased

Yes, so the market value of the on the insurance car has gone up? If my car was worth £5k in 2020 but the market value is now £7500 (supported by trade sales, WBAC etc) then if my car is worth market value then it's worth £7500 to the insurance (in simple terms)